WISE FINANCIAL LITERACY
CERTIFICATION EXAM
QUESTIONS AND ANSWERS
LATEST VERSIONS 2025
GRADED A+
user
[COMPANY NAME] [Company address]
,gift card - CORRECT A N S W E R ⬛ ⬛- also known as a gift certificate; refers to a prepaid,
store-valued money card issued by the retailer or by a bank that is used as an alternative to cash
for purchases at a particular business
inflation - CORRECT A N S W E R ⬛⬛- a general increase in prices and decline in
purchasing power (value of money) over a period of time
purchasing power - CORRECT A N S W E R ⬛⬛- the value of a currency in terms of the
amount of goods or services that one unit of money (or $1.00 in the U.S.) can buy
store card - CORRECT ANSWER⬛⬛ - a charge card or credit card used to purchase goods
in a particular store and paid with interest at a later date; usually carries an incentives or
rewards program
supply & demand - CORRECT A N S W E R ⬛⬛- the theory explaining the interaction
between the supply of a resource and the demand for that resource, or the effect that the
availability of a particular product and the desire for the product have on price
U.S. Treasury Department - CORRECT A N S W E R ⬛⬛- the government department
responsible for issuing all Treasury bonds, notes and bills
upward mobility - CORRECT A N S W E R ⬛⬛- the ability to move from a lower to a higher
social class or status, such as from the level of poverty to middle class, usually in terms of
household income and spending power
windfall income - CORRECT A N S W E R ⬛⬛- refers to a large profit that occurs
unexpectedly due to fortuitous circumstances, such as an unforeseen inheritance or winning the
lottery
balanced budget - CORRECT A N S W E R ⬛⬛- refers to a budget in which revenues, or
income, are equal to expenditures
budget deficit - CORRECT ANSWER⬛⬛- an indicator of financial health that occurs when
expenditures exceed revenue (income) or, in other words, more money was spent than the
, income available
discretionary income - CORRECT A N S W E R ⬛⬛- refers to the take-home income, or net
pay, that remains after mandatory deductions (i.e., taxes) and expenditures on necessary items
(i.e., food, shelter) are accounted for in the budget; also known as spending money or fun money
disposable income - CORRECT A N S W E R ⬛⬛ - refers to the take-home income available
for spending or saving after the deduction of taxes and other mandatory charges; also known as
net pay
emergency fund - CORRECT ANSWER⬛⬛- an account used to set aside funds needed in the
event of a personal financial dilemma, such as the loss of a job, a debilitating illness, or a major
expense; usually recommended to be at least six months expenses
fixed expense - CORRECT A N S W E R ⬛⬛- a budget item that will be the same total amount
from month-to-month regardless of changes in circumstance, such as rent or installment loan
(i.e., student or car) payments
opportunity costs - CORRECT A N S W E R ⬛⬛- the benefit, profit, or value of something that
must be given up in order to acquire or achieve something else; the alternate that was forfeited
when a decision was made
surplus - CORRECT A N S W E R ⬛⬛- the amount of something left over when requirements
have been met, such as a surplus of income after expenses are paid in a personal budget
trade off - CORRECT ANSWER⬛⬛- occurs when you give up the value or added-benefit of
one choice in order to achieve the desired results of another choice; usually includes an
assessment of "pros" and "cons"
variable expense - CORRECT A N S W E R ⬛⬛- a budget item that fluctuates from month-to-
month based on volume or usage, such as a water bill or electricity bill
impulse buying - CORRECT A N S W E R ⬛ ⬛ - the decision to purchase goods without
advance planning, as a result of a sudden whim or desire
CERTIFICATION EXAM
QUESTIONS AND ANSWERS
LATEST VERSIONS 2025
GRADED A+
user
[COMPANY NAME] [Company address]
,gift card - CORRECT A N S W E R ⬛ ⬛- also known as a gift certificate; refers to a prepaid,
store-valued money card issued by the retailer or by a bank that is used as an alternative to cash
for purchases at a particular business
inflation - CORRECT A N S W E R ⬛⬛- a general increase in prices and decline in
purchasing power (value of money) over a period of time
purchasing power - CORRECT A N S W E R ⬛⬛- the value of a currency in terms of the
amount of goods or services that one unit of money (or $1.00 in the U.S.) can buy
store card - CORRECT ANSWER⬛⬛ - a charge card or credit card used to purchase goods
in a particular store and paid with interest at a later date; usually carries an incentives or
rewards program
supply & demand - CORRECT A N S W E R ⬛⬛- the theory explaining the interaction
between the supply of a resource and the demand for that resource, or the effect that the
availability of a particular product and the desire for the product have on price
U.S. Treasury Department - CORRECT A N S W E R ⬛⬛- the government department
responsible for issuing all Treasury bonds, notes and bills
upward mobility - CORRECT A N S W E R ⬛⬛- the ability to move from a lower to a higher
social class or status, such as from the level of poverty to middle class, usually in terms of
household income and spending power
windfall income - CORRECT A N S W E R ⬛⬛- refers to a large profit that occurs
unexpectedly due to fortuitous circumstances, such as an unforeseen inheritance or winning the
lottery
balanced budget - CORRECT A N S W E R ⬛⬛- refers to a budget in which revenues, or
income, are equal to expenditures
budget deficit - CORRECT ANSWER⬛⬛- an indicator of financial health that occurs when
expenditures exceed revenue (income) or, in other words, more money was spent than the
, income available
discretionary income - CORRECT A N S W E R ⬛⬛- refers to the take-home income, or net
pay, that remains after mandatory deductions (i.e., taxes) and expenditures on necessary items
(i.e., food, shelter) are accounted for in the budget; also known as spending money or fun money
disposable income - CORRECT A N S W E R ⬛⬛ - refers to the take-home income available
for spending or saving after the deduction of taxes and other mandatory charges; also known as
net pay
emergency fund - CORRECT ANSWER⬛⬛- an account used to set aside funds needed in the
event of a personal financial dilemma, such as the loss of a job, a debilitating illness, or a major
expense; usually recommended to be at least six months expenses
fixed expense - CORRECT A N S W E R ⬛⬛- a budget item that will be the same total amount
from month-to-month regardless of changes in circumstance, such as rent or installment loan
(i.e., student or car) payments
opportunity costs - CORRECT A N S W E R ⬛⬛- the benefit, profit, or value of something that
must be given up in order to acquire or achieve something else; the alternate that was forfeited
when a decision was made
surplus - CORRECT A N S W E R ⬛⬛- the amount of something left over when requirements
have been met, such as a surplus of income after expenses are paid in a personal budget
trade off - CORRECT ANSWER⬛⬛- occurs when you give up the value or added-benefit of
one choice in order to achieve the desired results of another choice; usually includes an
assessment of "pros" and "cons"
variable expense - CORRECT A N S W E R ⬛⬛- a budget item that fluctuates from month-to-
month based on volume or usage, such as a water bill or electricity bill
impulse buying - CORRECT A N S W E R ⬛ ⬛ - the decision to purchase goods without
advance planning, as a result of a sudden whim or desire
